CNOOC Limited announced that its parent company, China National Offshore Oil Corporation (CNOOC) has signed production sharing contract (PSC) with BP for deepwater Block 54/11 in Pearl River Mouth Basin in the South China Sea.
Block 54/11 is located in Pearl River Mouth Basin in the east part of the South China Sea. It covers a total area of 4,586 square kilometers with water depths of 370-2,300 meters.
According to the terms of the contract, all expenditures incurred during the exploration period will be borne by BP. CNOOC has the right to participate in up to 51% working interest in any commercial discoveries in the block. CNOOC will act as the Operator in the Block.
This contract is the two hundredth PSC between CNOOC and foreign partners.
Press Release, July 16, 2013; Image: CNOOC